Chapter 5  Process Analysis
Chapter
5 Process Analysis
TRUE/FALSE
1. Process analysis is the documentation and detailed understanding of how work is performed and how
it can be redesigned.
Answer: True
Reference: A Systematic Approach
Difficulty: Easy
Keywords: process, analysis
2. The four core processes that merit thorough analysis are supplier relationship, new service/product
development, order fulfillment, and service/product recovery.
Answer: False
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: core, process, analysis
3. An employee suggestion system can be an effective method for identifying processes that need
improvement.
Answer: True
Reference: A Systematic Approach
Difficulty: Easy
Keywords: employee, suggestion, process
4. The boundaries of the process to be analyzed are defined as the scale.
Answer: False
Reference: A Systematic Approach
Difficulty: Easy
Keywords: boundary, scope, process
5. Performance measures that are established for a process are known as metrics.
Answer: True
Reference: A Systematic Approach
Difficulty: Easy
Keywords: metrics, measure
74
Chapter 5  Process Analysis
6. Process improvement teams that focus on processes that cut across departmental boundaries have the
silo mentality.
Answer: False
Reference: A Systematic Approach
Difficulty: Easy
Keywords: silo, team, process
7. Once a process is identified, defined, evaluated, and redesigned, the benefits of the process analysis
cycle are realized.
Answer: False
Reference: A Systematic Approach
Difficulty: moderate
Keywords: process, cycle
8. Flow charts are effective for documenting and evaluating processes.
Answer: True
Reference: Documenting the Process
Difficulty: Easy
Keywords: flow, chart, document, process
9. A diamond represents a yes/no decision in a flow chart.
Answer: True
Reference: Documenting the Process
Difficulty: Moderate
Keywords: diamond, flow, chart, decision
10. A service blueprint is a flow chart of a service process that shows which of its steps has high
customer contact.
Answer: True
Reference: Documenting the Process
Difficulty: Moderate
Keywords: service, blueprint, process
11. Process charts trace the flow of information, customers, employees, equipment, or materials through
a process.
Answer: False
Reference: Documenting the Process
Difficulty: Moderate
Keywords: process, chart, flow
12. The best data analysis tool for recording which gas pump most customers use would be a checklist.
Answer: True
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: data, analysis, checklist
75
Chapter 5  Process Analysis
13. A histogram is a summarization of data measured on a yes-or-no basis.
Answer: False
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: histogram, data
14. The general principle that 80% of a company’s revenue is generated by 20% of its customers is
known as the Pareto concept.
Answer: True
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, chart
15. A scatter diagram is a graphical technique that shows whether two variables may be related.
Answer: True
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: scatter, diagram, variables
16. A fishbone diagram identifies which category is most frequently observed out of all the categories for
which you have data.
Answer: False
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: fishbone, diagram
17. Data snooping is the acquisition of external benchmarking data even when the external organization
has not authorized a formal benchmarking agreement.
Answer: False
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: data, snooping
18. Simulation is an act of reproducing the behavior of a process using a model that describes each step
of the process.
Answer: True
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: simulation, process, model
19. A group of people who are knowledgeable about the process and its disconnects meets to propose
ideas for change in a rapid-fire manner. Such a session is called a brainstorming session.
Answer: True
Reference: Redesigning the Process
Difficulty: Easy
Keywords: brainstorming, process, ideas
76
Chapter 5  Process Analysis
20. The only people who can provide input to a brainstorming session are members of the design team.
Answer: False
Reference: Redesigning the Process
Difficulty: Easy
Keywords: brainstorming, design, team
21. Brainstorming sessions can be effectively conducted on the Internet using software that allows one
person to see another’s ideas and build on them.
Answer: True
Reference: Redesigning the Process
Difficulty: Easy
Keywords: brainstorming, Internet, software
22. The bursar’s office at a large state school sends a team to the bookstore on campus to see how they
handle customers and process payments. This is an example of functional benchmarking.
Answer: False
Reference: Redesigning the Process
Difficulty: Hard
Keywords: benchmarking, functional, internal
23. Benchmarking by tracking the performance of a process over time is always available.
Answer: True
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, process, time
24. Benchmarking is a continuous, systematic procedure that measures a firm’s products, services, and
processes against those of industry leaders.
Answer: True
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, measure, leader
25. Implementing a beautifully redesigned process completes the continuous monitoring and
improvement process.
Answer: False
Reference: Managing Processes
Difficulty: Moderate
Keywords: process, implementation, managing
26. A great job of flowcharting and benchmarking a process is of only academic interest if the proposed
changes are not implemented.
Answer: True
Reference: Managing Processes
Difficulty: Moderate
Keywords: process, implementation
77
Chapter 5  Process Analysis
MULTIPLE CHOICE
27. Process analysis focuses on:
a. how work is actually done.
b. who is responsible for the customer.
c. the customer’s needs.
d. the number of steps in between supplier and customer.
Answer: a
Reference: Process Analysis Across the Organization
Difficulty: Easy
Keywords: process, analysis, work
28. Which of these is NOT a core process that managers would focus on for improvement opportunities?
a. Supplier relationships
b. New product/service development
c. Order fulfillment
d. Employee training
Answer: d
Reference: A Systematic Approach
Difficulty: Easy
Keywords: core, process, identify, opportunities
29. A voluntary system by which employees submit their ideas on process improvements is used in the:
a. scope definition phase of process analysis.
b. process redesign phase of process analysis.
c. performance evaluation phase of process analysis.
d. opportunity identification phase of process analysis.
Answer: d
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: system, suggestion, opportunity, identification
30. A voluntary system by which employees submit their ideas on process improvements is called:
a. process contribution.
b. a suggestion system.
c. a brainstorming session.
d. a Pareto system.
Answer: b
Reference: A Systematic Approach
Difficulty: Easy
Keywords: system, suggestion, employee
78
Chapter 5  Process Analysis
31. The step in process analysis that immediately follows the scope definition phase is the:
a. document process phase.
b. evaluate performance phase.
c. redesign process phase.
d. implement changes phase.
Answer: a
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: scope, definition, process, document
32. The step in process analysis that immediately follows the process documentation phase is the:
a. define scope phase.
b. evaluate performance phase.
c. redesign process phase.
d. implement changes phase.
Answer: b
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: process, documentation, phase, performance
33. The step in process analysis that immediately follows the performance evaluation phase is the:
a. document process phase.
b. define scope phase.
c. redesign process phase.
d. implement changes phase.
Answer: c
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: performance, evaluation, redesign, process
34. A systematic approach to process analysis includes the step:
a. reengineering.
b. integration.
c. order fulfillment.
d. define scope.
Answer: d
Reference: A Systematic Approach
Difficulty: Easy
Keywords: define, scope, process, analysis, systematic
79
Chapter 5  Process Analysis
35. An examination of strategic issues such as possible gaps between a process’s competitive priorities
and current competitive capabilities falls in the:
a. document process phase of process analysis.
b. evaluate performance phase of process analysis.
c. redesign process phase of process analysis.
d. identify opportunities phase of process analysis.
Answer: d
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: identify, opportunities, strategic
36. The resources that management assigns to improving or reengineering the process should:
a. outweigh the consequences.
b. match the process’s scope.
c. be at risk for less time than the redesign takes.
d. be less costly than the total downtime during redesign.
Answer: b
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: resources, scope, process
37. If a process under analysis is extensive and cuts across several departmental lines, it may benefit
from forming a(n):
a. brainstorming team.
b. benchmarking team.
c. steering team.
d. implementation team.
Answer: c
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: steering, team, process
38. Performance measures such as average response times, repair times, and percent defective are
referred to as:
a. benchmarks.
b. metrics.
c. targets.
d. tactics.
Answer: b
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: metrics, measures, performance
80
Chapter 5  Process Analysis
39. Gaps between actual and desired performance are termed:
a. faults.
b. metrics.
c. opportunities.
d. disconnects.
Answer: d
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: gap, disconnect
40. Once the root causes of performance gaps have been discovered, it is necessary to:
a. shift from analytical thinking to creative thinking.
b. shift from creative thinking to analytical thinking.
c. form a benchmarking team.
d. form a steering team.
Answer: a
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: root, cause, analytical, creative
41. Widespread participation in process analysis is essential not only because of the work involved but
also because:
a. employees tend to neglect their regular work duties, thus no one falls too far behind.
b. it builds commitment.
c. no one can analyze a process by himself.
d. a silo mentality should prevail and this requires large numbers of workers.
Answer: b
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: participation, commitment
42. A flowchart traces the flow of:
a. information through a process.
b. customers through a process.
c. equipment through a process.
d. All of these can be traced through a process using a flow chart.
Answer: d
Reference: Documenting the Process
Difficulty: Moderate
Keywords: flow, chart, flowchart
81
Chapter 5  Process Analysis
43. A flowchart created at the strategic level of an organization should show:
a. core processes and their linkages.
b. details of a process as bracketed by its scope.
c. individual steps that may have been aggregated at a higher level of analysis.
d. areas that are seen and unseen by the customer.
Answer: a
Reference: Documenting the Process
Difficulty: Moderate
Keywords: flow, chart, flowchart
44. When a process is high in divergence, it is likely to have:
a. few rectangle-shaped symbols.
b. many rectangle-shaped symbols.
c. few diamond-shaped symbols.
d. many diamond-shaped symbols.
Answer: d
Reference: Documenting the Process
Difficulty: Moderate
Keywords: flow, chart, flowchart, divergence
45. Cross-functional coordination is at particular risk where:
a. there is low process divergence.
b. there are handoffs in the process.
c. functional silos exist.
d. it is not possible to create a flow chart.
Answer: b
Reference: Documenting the Process
Difficulty: Moderate
Keywords: handoff, coordination, cross, functional
46. An effective tool for showing steps of a service process with a high level of customer contact is a:
a. Pareto chart.
b. flow chart.
c. service blueprint.
d. check sheet.
Answer: c
Reference: Documenting the Process
Difficulty: Moderate
Keywords: service, blueprint, customer, tool
82
Chapter 5  Process Analysis
47. The feature that service blueprints use to distinguish steps that are seen by the customer from those
that are not seen by the customer is:
a. separation using different pages.
b. a line of visibility.
c. the Mendoza line.
d. a “C” and a “P.”
Answer: b
Reference: Documenting the Process
Difficulty: Moderate
Keywords: service, blueprint, customer, visibility
48. A process chart activity that changes, creates, or adds something is a(n):
a. operation.
b. transportation.
c. inspection.
d. delay.
Answer: a
Reference: Documenting the Process
Difficulty: Easy
Keywords: process, chart, symbol
49. A process chart activity that checks or verifies something but does not change it is a(n):
a. operation.
b. transportation.
c. inspection.
d. delay.
Answer: c
Reference: Documenting the Process
Difficulty: Easy
Keywords: process, chart, symbol
50. Which one of the following statements concerning flow diagrams is NOT true?
a. Flow diagrams can take many forms.
b. It is helpful on flow diagrams to label each step with process measurements such as cost, capacity,
or total elapsed time.
c. Flow diagrams trace the flow of information, customers, equipment, employees, or materials
through a process.
d. The dotted line of visibility separates activities subcontracted from those done in-house.
Answer: d
Reference: Documenting the Process
Difficulty: Moderate
Keywords: flow, diagram
83
Chapter 5  Process Analysis
51. Which one of the following groups of activities is likely to be shown on a process chart?
a. Operation, inspection, delay
b. Operation, capital intensity, flow strategy
c. Transportation, material flow, physical layout
d. Storage, delay, personnel involved
Answer: a
Reference: Documenting the Process
Difficulty: Moderate
Keywords: process, chart, operation, inspection, delay
52. The five categories of activities (operation, transportation, inspection, delay, and storage) are used in
which of the following methods of process analysis?
a. Multiple-activity chart
b. Process chart
c. Capital budgeting
d. Flow diagram
Answer: b
Reference: Documenting the Process
Difficulty: Moderate
Keywords: process, chart
53. A process chart activity that occurs when something is put away until a later time is a(n):
a. storage.
b. transportation.
c. inspection.
d. delay.
Answer: a
Reference: Documenting the Process
Difficulty: Easy
Keywords: process, chart, symbol
54. A professor can grade a quiz in 30 seconds. Over the course of an academic year he has 6 sections of
a course with an average of 30 students with 10 quizzes in each section. If he is paid $40 an hour,
how much is his annual quiz-grading labor cost to the university?
a. $60
b. $100
c. $600
d. $36,000
Answer: c
Reference: Documenting the Process
Difficulty: Moderate
Keywords: annual, labor, cost
84
Chapter 5  Process Analysis
55. A professor’s graduate assistant can grade a quiz in 40 seconds. Over the course of an academic year
he assists with 6 sections of a course with an average of 30 students with 10 quizzes in each section.
If he is paid $8 an hour, how much is his annual quiz-grading labor cost to the university?
a. $60
b. $160
c. $576
d. $576,000
Answer: b
Reference: Documenting the Process
Difficulty: Moderate
Keywords: annual, labor, cost
56. A professor can grade a quiz in 2 minutes. Over the course of an academic year he has 6 sections of a
course with an average of 25 students with 10 quizzes in each section. If he is paid $40 an hour, how
much is his annual quiz-grading labor cost to the university?
a. $250
b. $500
c. $1000
d. $2,000
Answer: d
Reference: Documenting the Process
Difficulty: Moderate
Keywords: annual, labor, cost
57. A welder can weld 2 angle irons together in 2 minutes. Over the course of an entire year she will
assemble 1,000 units, each of which requires 3 such welds. If she is paid $25 an hour, how much is
her annual welding labor cost?
a. $1,000
b. $1,250
c. $2,500
d. $3,000
Answer: c
Reference: Documenting the Process
Difficulty: Moderate
Keywords: annual, labor, cost
58. A welder can weld 2 angle irons together in 2 minutes. Over the course of an entire year he will
assemble 1,000 units, each of which requires 2 such welds. If he is paid $30 an hour, how much is his
annual welding labor cost?
a. $250
b. $500
c. $1,000
d. $2,000
Answer: d
Reference: Documenting the Process
Difficulty: Moderate
Keywords: annual, labor, cost
85
Chapter 5  Process Analysis
59. The manager of a supermarket would like to know which of several quality problems to address first.
A tool that would be most helpful would be a:
a. checklist.
b. cause-and-effect diagram.
c. Pareto chart.
d. scatter diagram.
Answer: c
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, problem
60. A process troubleshooter has to decide which problem to address first with his or her cause-and-effect
diagram. The data analysis tool that will help him decide which problem to tackle first is a:
a. scatter diagram.
b. check sheet.
c. flow chart.
d. Pareto chart.
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, chart, problem
61. A manager of a fiberglass molding operation suspects that the number of defects is related to the number of
total units produced of a particular product. A tool most useful in this analysis would be a:
a. checklist.
b. cause-and-effect diagram.
c. Pareto chart.
d. scatter diagram.
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: scatter, diagram
62. Which one of the following techniques will help management trace customer complaints directly to
the operations involved?
a. Cause-and-effect diagram
b. Quality circles
c. Quality engineering
d. Specification management
Answer: a
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: cause, effect
86
Chapter 5  Process Analysis
63. The best data analysis tool for displaying whether students have taken the prerequisite for their
operations management course is a:
a. Pareto chart.
b. bar chart.
c. checklist.
d. histogram.
Answer: b
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: bar, chart
64. The best data analysis tool for displaying the mean and standard deviation of a continuous data
distribution is a:
a. Pareto chart.
b. bar chart.
c. checklist.
d. histogram.
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: histogram, mean, dispersion, central ,tendency
65. The cause-and-effect diagram is a method that:
a. was developed by W. Edwards Deming.
b. relates a product defect to its potential contributing factors.
c. helps management develop quality circles.
d. reduces the frequency of product design.
Answer: b
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: cause, effect
87
Chapter 5  Process Analysis
66. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each
table. The data collected from the past week’s diners appear in the following table.
Complaint
Food taste
Food temperature
Order mistake
Slow service
Table/utensils dirty
Too expensive
Frequency
27
9
5
19
47
9
Using a classic Pareto analysis, what categories comprise 80% of the total complaints?
a. Table/utensils dirty
b. Table/utensils dirty, Food taste, Slow service
c. Food taste, Food temperature, Order mistake, Slow service, Table/utensils dirty
d. Food taste, Food temperature, Order mistake, Slow service, Too expensive
Answer: b
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, analysis
67. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each
table. The data collected from the past week’s diners appear in the following table.
Complaint
Food taste
Food temperature
Order mistake
Slow service
Table/utensils dirty
Too expensive
Frequency
80
9
2
16
47
4
Using a classic Pareto analysis, what categories comprise about 20% of the total complaints?
a. Order mistake, Too expensive, Food temperature, Slow service
b. Slow service, Order mistake,
c. Food taste, Food temperature, Slow service
d. Food taste, Table/utensils dirty
Answer: a
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, analysis
88
Chapter 5  Process Analysis
68. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each
table. The data collected from the past week’s diners appear in the following table.
Complaint
Food taste
Food temperature
Order mistake
Slow service
Table/utensils dirty
Too expensive
Frequency
80
9
2
16
47
4
Using a classic Pareto analysis, what are the vital few complaints?
a. Table/utensils dirty
b. Slow service
c. Food taste
d. Food taste, Table/utensils dirty
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, analysis
89
Chapter 5  Process Analysis
69. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each
table. The data collected from the past week’s diners have been plotted and appear in the following
graph. The number of complaints for each category is shown above each bar.
60
100.0%
55
90.0%
80.0%
50
70.0%
60.0%
40
32
30
20
50.0%
40.0%
16
30.0%
20.0%
13
10
4
2
0
10.0%
0.0%
Foo
Slow
Fo o
d tem Table/ut
d tas Too exp Order m
serv
ensi
ensi
istak
te
pera
ice
l
ve
s
e
ture
dirty
How was the value for the point represented by the square calculated?
16
55  32  16
55  32  16
b.
55  32  16
55  32  16
c.
55  32  16  13  4  2
16
d.
55  32  16  13  4  2
a.
Answer: c
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, analysis
90
Frequency
Percent
Chapter 5  Process Analysis
70. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each
table. The data collected from the past week’s diners have been plotted and appear in the following
graph. The number of complaints for each category is shown above each bar.
60
120%
50
100%
40
80%
30
20
10
55
60%
40%
32
16
13
4
2
0%
Ta
bl
e
Fo
od
te
m
pe
ra
tu
/u
re
te
ns
ils
di
rty
Sl
ow
se
rv
ic
e
Fo
od
ta
To
st
e
o
ex
pe
ns
O
ive
rd
er
m
ist
ak
e
0
20%
Frequency
Percent
How was the value for the point represented by the triangle calculated?
32
55  32
55  32
b.
55  32
a.
32
55  32  16  13  4  2
55  32
d.
55  32  16  13  4  2
c.
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, analysis
91
Chapter 5  Process Analysis
71. The act of reproducing the behavior of a process using a model that describes each step of the
process is called:
a. process analysis.
b. Pareto analysis.
c. benchmarking.
d. simulation.
Answer: d
Reference: Evaluating Performance
Difficulty: Easy
Keywords: benchmarking, model, process
72. Which of these questions is not one of the ways that ideas are typically uncovered during a process
redesign?
a. What is being done?
b. When is it being done?
c. Who is doing it?
d. Why are we doing it?
Answer: d
Reference: Redesigning the Process
Difficulty: Easy
Keywords: process, redesign
73. Which of these is NOT a general rule followed when engaged in a brainstorming session?
a. Ideas should be recorded by a facilitator.
b. The list of ideas should be as short as possible to make analysis easy.
c. Creativity should be encouraged.
d. The creative part of the mind should be encouraged at the expense of the judicial side.
Answer: b
Reference: Redesigning the Process
Difficulty: Easy
Keywords: process, redesign, brainstorming
74. A good brainstorming session has the characteristic of:
a. good judgment skills.
b. ability to think of creative ideas.
c. skill in identifying the best payoffs.
d. ability to analyze a process analytically.
Answer: b
Reference: Redesigning the Process
Difficulty: Easy
Keywords: creativity, brainstorming
92
Chapter 5  Process Analysis
75. Brainstorming sessions must have:
a. all participants together in the same room.
b. a mechanism for evaluation of the ideas as they are surfaced.
c. a means of implementing ideas as they are surfaced.
d. a way for all participants to communicate.
Answer: d
Reference: Redesigning the Process
Difficulty: Easy
Keywords: benchmarking
76. Which of the following statements regarding brainstorming is FALSE?
a. After the brainstorming session is over, the design team moves into the “get real” phase to analyze
the ideas.
b. Participants are discouraged from evaluating any ideas generated during the brainstorming session.
c. Anyone can be a participant in the brainstorming session regardless of whether they have seen or
heard the process documentation.
d. The “get crazy” phase of process analysis is when ideas are sought that invert existing rules and
examine new approaches.
Answer: c
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: process, redesign, brainstorming
77. Benchmarking involves four basic steps, which are:
a. plan, do, check, and act.
b. planning, analysis, integration, and action.
c. search, check, systematize, and act.
d. find, do, change, and calibrate.
Answer: b
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, steps
78. Xerox benchmarked its distribution system against that of L. L. Bean’s. This is an example of:
a. competitive benchmarking.
b. internal benchmarking.
c. functional benchmarking.
d. disaggregate benchmarking.
Answer: c
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, functional
93
Chapter 5  Process Analysis
79. Benchmarking studies must have:
a. a direct competitor for comparison.
b. a team composed of at least one member from each department in the organization.
c. a team composed of at least one member from each department in the organization plus one
customer of each process output.
d. quantitative goals.
Answer: d
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, data, quantitative
80. An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to
observe a rival firm perform the new-client cultivation process in hopes of gleaning improved
methods it can adopt. This is an example of:
a. competitive benchmarking.
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
Answer: a
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, competitive
81. An accounting professor realizes she is woefully inadequate at performing research. She discusses
the art of research with a colleague and gains important insights that permit her to establish a
research agenda. This is an example of:
a. competitive benchmarking.
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
Answer: c
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, internal
82. An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to
observe a law firm perform the new-client cultivation process in hopes of gleaning improved
methods it can adopt. This is an example of:
a. competitive benchmarking.
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
Answer: b
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, functional
94
Chapter 5  Process Analysis
83. A benchmarking team examines its own success with order delivery time and compares its metrics
with a rival. This phase of the benchmarking process is called:
a. examination.
b. analysis.
c. integration.
d. action.
Answer: b
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, analysis
84. A benchmarking team meets for the first time and decides to try to improve its order delivery time
and selects another firm as a benchmarking partner. This phase of the benchmarking process is
called:
a. planning.
b. selection.
c. integration.
d. action.
Answer: a
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, planning
85. A benchmarking team establishes goals and obtains support from the management team that agrees to
provide resources for accomplishing the goals. This phase of the benchmarking process is called:
a. goal setting.
b. analysis.
c. integration.
d. action.
Answer: c
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, integration
86. A benchmarking team develops improvement plans and team assignments. Once the plans are
implemented it monitors progress and recalibrates benchmarks as improvements are made. This
phase of the benchmarking process is called:
a. implementation.
b. analysis.
c. integration.
d. action.
Answer: d
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, action
95
Chapter 5  Process Analysis
87. Which one of the following statements about benchmarking is TRUE?
a. Benchmarking is useful only when a company compares itself against other companies.
b. Because of the power of benchmarking, specific plans of action are not necessary.
c. Benchmarking is the same as the plan-do-check-act cycle in continuous improvement.
d. Benchmarking focuses on setting quantitative goals for continuous improvement.
Answer: d
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking
88. Which of these benchmarking metrics is NOT suitable for an order fulfillment process?
a. Finished goods inventory turnover
b. The company that actually makes the delivery to the customer
c. Percent of orders shipped on time
d. Value of plant shipments per employee
Answer: b
Reference: Redesigning the Process
Difficulty: Easy
Keywords: benchmarking, metric
89. Which of these benchmarking metrics is NOT suitable for a support process?
a. Average employee turnover rate
b. Total cost of payroll processes per $1,000 revenue
c. The impression that applicants have as they submit applications
d. Number of accepted jobs as a percent of job offers
Answer: c
Reference: Redesigning the Process
Difficulty: Easy
Keywords: benchmarking, metric
90. When managing processes, it is vital that:
a. attention is paid to competitive priorities and strategic fit.
b. design teams are allowed to function creatively and set their own charter.
c. design teams are not held accountable since their involvement ends once the new process rolls out.
d. the organization is not satisfied unless fundamental reengineering changes are made.
Answer: a
Reference: Managing Processes
Difficulty: Moderate
Keywords: managing, process, strategy, competitive
96
Chapter 5  Process Analysis
91. When managing processes, it is vital that:
a. design teams are allowed to function creatively and set their own charter.
b. the organization is not satisfied unless fundamental reengineering changes are made.
c. sound project management practices are used to implement the redesigned process.
d. people are redesigned at the same time the process is redesigned.
Answer: c
Reference: Managing Processes
Difficulty: Moderate
Keywords: managing, process, project, implementation
92. Good process management should include:
a. a mechanism for identifying what goes wrong and who is responsible.
b. a method for creating self-directed work teams
c. at least half time dedicated to each employee’s self-actualization.
d. an infrastructure for continuous improvement.
Answer: d
Reference: Managing Processes
Difficulty: Moderate
Keywords: managing, process, continuous, improvement
FILL IN THE BLANK
93. ____________ is the documentation and detailed understanding of how work is performed and how
it can be redesigned.
Answer: Process analysis
Reference: A Systematic Approach
Difficulty: Easy
Keywords: process, analysis
94. The first step of the systematic approach to process analysis is ____________.
Answer: identify opportunities
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: identify, opportunities, process, analysis
95. Process ____________ is the boundary of the process to be analyzed.
Answer: scope
Reference: A Systematic Approach
Difficulty: Easy
Keywords: process, scope, boundary
96. A voluntary system by which employees submit their ideas on process improvements is called a(n)
____________.
Answer: suggestion system
Reference: A Systematic Approach
Difficulty: Easy
Keywords: system, suggestion
97
Chapter 5  Process Analysis
97. ____________ are performance measures that are established for a process and the steps within it.
Answer: Metrics
Reference: A Systematic Approach
Difficulty: Easy
Keywords: metric
98. Gaps between actual and desired performance are called ____________.
Answer: disconnects
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: gap, disconnect
99. A(n) ____________ means that a department focuses on its own tasks without understanding the role
and processes of departments outside its own organizational boundaries.
Answer: silo mentality
Reference: A Systematic Approach
Difficulty: Easy
Keywords: silo, mentality
100. A flowchart traces the flow of ____________, ____________, ____________, or ____________
through the various steps of a process.
Answer: information, customers, equipment, materials
Reference: Documenting the Process
Difficulty: Hard
Keywords: flow, chart, information, customers, equipment, materials
101. A(n) ____________ is a table that lists and categorizes the steps in a process.
Answer: process chart
Reference: Documenting the Process
Difficulty: Moderate
Keywords: process, chart
102. A(n) ____________ shape in a process chart represents a decision point in the process.
Answer: diamond
Reference: Documenting the Process
Difficulty: Moderate
Keywords: decision, process, chart
103. A special flowchart of a service process that shows which of its steps have high customer contact
is a(n) ____________.
Answer: service blueprint
Reference: Documenting the Process
Difficulty: Moderate
Keywords: flowchart, flow, chart, service, blueprint
98
Chapter 5  Process Analysis
104. The ____________ in a service blueprint separates which steps are in view of the customer from
those that aren’t.
Answer: line of visibility
Reference: Documenting the Process
Difficulty: Moderate
Keywords: line, visibility, service, blueprint
105. A(n) ____________ is a form used to record the frequency of occurrence of certain product or
service characteristics related to quality.
Answer: checklist
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: checklist, check, list
106. A(n) ____________ is a bar chart on which the factors are plotted in decreasing order of frequency
along the horizontal axis.
Answer: Pareto chart
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, chart
107. A(n) ____________ would be a useful tool to determine the effect that the number of practice
problems solved correctly has on the midterm score.
Answer: scatter diagram
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: scatter, diagram
108. A(n) ____________ is a diagram that relates a key quality problem to its potential causes.
Answer: cause-and-effect diagram
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: cause, effect, fishbone, Ishikawa
109. The process of gathering data regarding a process and sifting the data to deduce causes of
problems is called ____________.
Answer: data snooping
Reference: Evaluating Performance
Difficulty: moderate
Keywords: data, snooping
110. ____________ is the act of reproducing the behavior of a process using a model that describes
each step of the process.
Answer: Process simulation
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: process, simulation
99
Chapter 5  Process Analysis
111. A simulation model goes one step further than possible with analysis tools, because it can show
how the process performs ____________ over time.
Answer: dynamically
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: process, simulation
112. A(n) ____________ is a method where a group of people, knowledgeable about the process and its
disconnects, propose ideas for change in a rapid-fire manner.
Answer: brainstorming session
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: brainstorming
113. ____________ is a continuous, systematic procedure that measures a firm’s products, services, and
processes against those of industry leaders.
Answer: Benchmarking
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking
114. Once the benchmarking team has collected the data, the ____________ phase of the benchmarking
study can begin.
Answer: analysis
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, analysis
115. The bursar’s office at your university decides to benchmark the collections department of a credit
agency to improve their own collection rate. This is an example of ____________ .
Answer: functional benchmarking
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, functional
116. ____________ is based on comparison of processes with a direct adversary in industry.
Answer: Competitive benchmarking
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, competitive
117. ____________ involves using an organizational unit with superior performance as the ideal for
other departments.
Answer: Internal benchmarking
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, internal
100
Chapter 5  Process Analysis
118. The American company that has changed the way the business world looks at benchmarking and
knowledge sharing is ____________.
Answer: Xerox
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking
SHORT ANSWERS
119. What is the six-step blueprint for process analysis and what are the basic requirements for each
step?
Answer: The six steps are identify opportunities, define scope, document process, evaluate
performance, redesign process, and implement changes. Opportunities can be identified by
examining the four core processes of supplier relationships,new service/product development, order
fulfillment, and customer relationship. Other ways to identify opportunities are by looking at
strategic issues and by asking employees. Scope definition entails establishing the boundaries of the
process to be analyzed. The process can be documented by developing a list of the process’s inputs,
suppliers, customers, and listing in sequence the different steps that the process consists of.
Performance evaluation consists of identifying metrics that permit an objective evaluation of the
current process state and any progress that is made.
The process is redesigned by examining what can be improved and then thinking of and analyzing
ways to improve those deficiencies. Finally, the process improvements are implemented by getting
support and buy-in from all constituents.
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: process, improvement
120. How can flowcharts and process charts be used to study and improve operations? Include
descriptions of these two tools, the types of questions that can be addressed with them, and the extent
to which teams can be used.
Answer: Flow charts trace the flow of information, customers, employees, equipment, or
material through a process. Process charts record all the activities performed by a person or a
machine, at a workstation, with a customer, or on materials. Answers will vary.
Reference: Documenting the Process
Difficulty: Moderate
Keywords: flow, chart, diagram
101
Chapter 5  Process Analysis
121. You have been hired as an external consultant to improve processes at a business. You are
unfamiliar with exactly how the work is currently done but are intimately familiar with charting
techniques and data analysis tools. What is a general sequence for use of these tools and why should
you use them in the sequence you specify?
Answer: Because you are unfamiliar with the process, you should first use a flowchart, service
blueprint, or process chart. This diagram will give you a big-picture view of what is currently
happening. This will also provide some insight into key data collection points where workers
might use checklists to collect some data. After data has been collected, elementary data
analysis may be performed using a histogram, Pareto chart, and scatter diagram as
appropriate. The tallest/leftmost bar on a Pareto chart can be the head of the first fishbone
diagram (if the bars represent problems). Once the largest problem is solved, more data can
be collected to verify that improvements in the process have taken place.
Reference: Evaluating Performance, Documenting the Process
Difficulty: Hard
Keywords: check list, histogram, Pareto chart, fishbone, flow, chart, service, blueprint
122. What is a fishbone chart?
Answer: Also called a cause-and-effect diagram, the fishbone chart relates a key quality
problem to its potential causes.
Reference: Evaluating Performance
Difficulty: Easy
Keywords: fishbone, cause, effect
102
Chapter 5  Process Analysis
123. Create a flowchart that displays the proper sequential use of the major graphical tools in the
chapter. Include a note next to each tool that explains how the output of one tool is used as the input
for the following tool.
Answer: A flowchart shows a big picture view of the process. The output from this step is a
view that shows appropriate points for data collection using a checklist. Once the checklist
has been deployed, the data that has been collected can be analyzed by a histogram or a
Pareto chart (if data can be categorized) or a scatter diagram (if coordinate data fall more
naturally into continuous distributions). Finally, the tallest bar in the Pareto chart serves as
the input to a cause-and-effect diagram as the fishbone’s head.
Flow
Chart
Checklist
Histo;
Pareto;
Scatter
Cause &
Effect
Diagram
Big
picture
shows
collection
points
Data
collected
for
graphical
analysis
Greatest
problem &
relationships
identified
Root
cause of
problem
identified
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: fishbone, flow chart, checklist, histogram, Pareto, scatter
124. What are the generic steps in any benchmarking study and what are examples of the three types of
benchmarking?
Answer: The steps in any benchmarking study are planning, analysis, integration, and action.
The planning step requires the benchmarking team to identify the process, service, or product
to be benchmarked, the firms to be used for comparison, and the collection of data. In the
analysis step, the team determines the gap between its employer and the benchmarking
partner. The integration step features the establishment of goals for the new process and
secures management support for changes. The action phase is when plans are developed and
implemented and the benchmarks are recalibrated as improvements are realized. Examples
will vary but the three types are competitive, functional, and internal. Competitive
benchmarking is comparison with a direct competitor; functional benchmarking is a
comparison with similar functions outside the firm but not of a direct competitor; and
internal benchmarking is a comparison with another department or function in the same
company.
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, competitive, internal, functional
103
Chapter 5  Process Analysis
PROBLEMS
125. An existing insurance application process requires manual keying of three different forms by a
team of data entry operators. The three forms’ input times appear in the following table along with
the numbers of each type of form anticipated for the coming year. A proposed refinement in the
process would reduce the number of forms but make each slightly longer. This would be combined
with a search of public records on the World Wide Web as necessary. These times and quantities
appear in the lower half of the table. If the labor rate for the data entry operators is the same, which
method is preferable?
Form
Part A – Existing Method
Part B – Existing Method
Part C – Existing Method
Part A – Proposed Method
Part B – Proposed Method
Web Search – Proposed Method
Time to Input (minutes)
3
3
4
4
4
2
Quantity (forms/year)
1,200,000
1,200,000
1,100,000
1,200,000
1,200,000
650,000
Answer:
Annual Labor Cost=(Time to Perform Process)×(Number of Times Performed/Year)
Existing Method
Part A 3 minutes  1, 200, 000  3, 600, 000
Part B 3 minutes  1, 200, 000  3, 600, 000
Part C 4 minutes  1,100, 000  4, 400, 000
Total Existing Process: 11,600,000 minutes
Proposed Method
Part A 4 minutes  1, 200, 000  4,800, 000
Part B 4 minutes  1, 200, 000  4,800, 000
Part C (web) 2 minutes  650, 000  1,300, 000
Total Proposed Process: 10,900,000 minutes – A savings of 700,000 minutes/year
Reference: Documenting the Process
Difficulty: Moderate
Keywords: annual, labor, cost
104
Chapter 5  Process Analysis
126. A discount store is experiencing an unacceptable number of dissatisfied customers leaving from
the checkout process. Information from customer complaints about the checkout process was
collected and is found in the following table. Construct a Pareto chart to identify the significant
problems.
Problem Type
Total Problems
Cashier slow
Price check required
Line too long
Cashier unfriendly
15
9
22
4
Answer:
Pareto Chart
25
1.00
Frequency
20
0.75
15
0.50
10
0.25
5
0
0.00
Line too
long
Cashier Price check Cashier
slow
unfriendly
Problem
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto
105
Chapter 5  Process Analysis
127. Because a telephone customer service center has experienced several problems, it has begun to
analyze the data from customer complaints. The first step was to construct the following table. Use
this data to build a Pareto chart to help identify the “vital few” problems.
Problem Type
Total Problems
Person not available
5
Incorrect information given
12
Phone line busy
7
Long delay
39
Phone tree confusing
20
People unfriendly
17
Answer:
45
40
35
30
25
20
15
10
5
0
1.00
0.75
0.50
Problem
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto
106
Person not
available
People
unfriendly
Incorrect
information
given
Phone line
busy
Phone tree
confusing
0.25
Long delay
Frequency
Pareto Chart
0.00
Chapter 5  Process Analysis
128. The semester project came back from the copy store and to her horror, the project leader has just
noticed that the left side y-axis of a key Pareto chart was cut off due to a printing error. The bar chart
component uses the missing left side y-axis and the cumulative percentage line on the Pareto chart
uses the right side y-axis. The project leader is pretty sure that the total number of observations in all
combined categories is 200. Can you help her develop estimates of the counts for each of the five
categories?
110%
110
105
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MC
FB
TF
SA
PB
Answer:
The actual counts for the five categories are:
Category
MC
FB
TF
SA
PB
Count
104
42
40
8
6
Some allowance should be made for alignment in reading the graph’s right hand y-axis and matching up
the location of the cumulative percentage markers for each category.
Since the total number of observations equals 200, the percentages on the right side y-axis can be
multiplied by 200 to yield estimates of the count values. Based on a rough reading:
MC = 200 x 52.5 = 105
FB = 200 x (72.5 – 52.5) = 40
TF = 200 x (92.5 – 72.5) = 40
SA = 200 x (97.5 – 92.5) = 10
PB = 200 x (100 – 97.5) = 5
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto
107
Chapter 5  Process Analysis
129. Develop a process chart for a manual car wash.
Answers will vary, but a typical answer might look like the following
process chart:
Inputs
Solver—Process Charts
Enter data in shaded areas.
Process:
Manual
Car
Wash
Summary
Subject:
Activity
Beginning:
Ending:
Operation
Transport
Inspect
Delay
Store
Step
No.
Time
(min)
Distance
(ft)
1
2
3
4
5
6
7
8
9
10
11
12
1.00
0.40
0.50
2.00
0.30
0.50
3.00
0.50
0.50
2.00
0.50
0.50
-20.0

OP
X
 

TRA
N
X
X
10.0
20.0
10.0
10.0
X
X
X
X
X
X



3
1.20

1
0.50


2
1.00
--
--
Step Description

D STO

ELAY RE Attendant accepts instructions from customer
130. Car driven into vacuuming area
X
Delay waiting for vacuuming
Car vacuumed
Car moved to wash area
X
Delay waiting for wash
Car washed
Car dried
Car moved to hand dry area
Car hand dried
X
Final inspection
Car given to customer
Reference: Documenting the Process
Difficulty: Moderate
Keywords: process, chart
108
Number Time
of Steps (min)
6
9.00